TRANSOCEAN, one of the leading offshore drilling companies, will have a Cyprus connection after after an agreement to buy Limassol-based Songa Offshore, an international midwater drilling contractor, with a strong presence in the North Atlantic.
The deal, which is reportedly worth US$3.4 billion and is set to be completed by the end of this year or early in 2018, was announced on August 15 and was described thus in a press release issued by Songa Offshore:
“The parties have agreed to seek to complete a business combination to be effected by Transocean (itself or through a wholly owned subsidiary) making a recommended public voluntary exchange offer for the entire share capital of Songa Offshore.”
Songa Offshore is Norwegian company, the fleet of which consists of seven midwater semisubmersibles and hold position as Statoil’s largest drilling service provider.
With the acquisition, Transocean said it would strengthen its position “as undisputed leader in harsh environment and ultra-deepwater drilling” as well as “increase contracted backlog by US$4.1 billion to a combined total of US$14.3 billion.”
The acquisition was recommended by the Songa Offshore board and supported by 76.6 per cent of shareholders, signing an irrevocable pre-acceptance agreement.